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<html><body><h2 id="content-id-8136592074-2"><b>Economics Questions Overview</b></h2><p>Economics Questions have a good weightage in the Ssc Chsl Exam and the type of question asked in Ssc Chsl exam is similar to the question mentioned below. It has been solved and explained by KD Live Experts under the guidance of Neetu Mam and they have tried to elaborate the concept used in Economics Questions.</p><h2 id="content-id-2109674385-3"><b>Question On Economics </b></h2>What was the recommendation of the Narasimham Committee-II regarding public sector banks?
<div class="row show--dificulty--bar" style="margin-top:8px;"><div class="col-sm-6 show--dificulty--bar" style="display:inline-flex !important;border-right:0.1px solid #eee;"><h3 style="font-size:12px !important;">Difficulty : Easy </h3></div><div class="col-sm-6 show--dificulty--bar" style="display:inline-flex;"><h3 style="font-size:12px !important;"> Average Time : 29 Seconds </h3></div></div><h2 id="content-id-0394862157-4"><b> Economics Questions Options</b></h2><ol><li><p>Reduce lending by public sector banks</p>
</li><li><p>Increase government ownership in public sector banks</p>
</li><li><p>Merge and consolidate public sector banks</p>
</li><li><p>Privatize all public sector banks</p>
</li></ol> <h2 id="content-id-1846793052-5"><b> Economics Questions Solution</b></h2><p>The correct answer is <strong>option 3 </strong>i.e. <strong>Merge and consolidate public sector banks.</strong></p>

<p>The <strong>Narasimham Committee-II</strong> on Banking Sector Reforms (<strong>1998</strong>) strongly recommended the <strong>merger and consolidation of public sector banks</strong> to create stronger, more competitive international-level entities. The committee envisioned a tiered banking structure for India, consisting of three to four large global banks, eight to ten national banks, and a network of localized regional and rural banks. Instead of bailing out weak banks with public money, the committee suggested merging them with financially sound institutions, a strategy aimed at improving efficiency, reducing non-performing assets, and enhancing capital adequacy across the Indian banking system.</p>
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